To lock in your selected property, you will be required to make an initial $1,000 refundable deposit. This deposit demonstrates you are serious about becoming a homeowner and it allows us to prioritize you over other applicants.
Once your application is accepted by the participating owner, PublicSquare will assist you in entering a contract with them. You will then be required to make another transfer. This time for 3% of the initial home value, minus the $1,000 you've already paid.
So as an example, if the property you've chosen is $600,000, your total Kickstarter contribution will be $18,000, and this amount will be added to your deposit which you can use in full later as a deposit when you buy the home.
If you don't proceed with entering an agreement with the property owner within 90 days, no further payments are required and your initial $1,000 which is held in trust, will be returned to you in full.
Similarly, the full amount of your Kickstarter (i.e. the $18,000 as per our example) will be held in a trust account until after you have completed moving into the property and all documents from both sides have been executed. After that, it will be distributed to the participating owner.
In summary, PublicSquare's 3% Kickstarter contribution is a much easier and more manageable amount to save when compared to a home loan deposit which may also require LMI.